The Merits Of Mortgage Refinancing

By Jane Koch

With today's low interest rates, a mortgage refinance looks more and more interesting by the day. A mortgage refinance can be an excellent source to reduce your monthly interest payments or to get some extra cash when you need it.

If you currently have high interest debt, it's a good idea to consider mortgage refinance. The interest rates of mortgage refinancing are lower than most debts you can have. Especially credit card debt interest rates can be killing. The interest on a mortgage is much lower.

If you need some extra cash, for whatever purpose, a mortgage refinance can help you get it. Mortgage refinancing gives you a way to trade the built up equity in your home for cash. The cash that is freed up this way can be used for any purpose.

Rolling up your current debt into a mortgage refinance can drastically lower your monthly costs. It gives you more breathing room and the possibility to start chipping away at your debt. A mortgage refinance will require you to incur some extra costs, so keep this in mind when you're planning a mortgage refinance.

When considering a mortgage refinance, ask your financial advisor about the whole picture. What added costs will you incur and how long will it take to make this back in savings? If at all possible, try to keep your current monthly payments, so you can pay off your debt quicker. Also, if you're currently a senior, consider a reverse mortgage. For seniors, a reverse can have even more benefits than a regular mortgage refinance. Ask your financial advisor about this form of mortgage.

About the Author:

Jane writes about mortgages and finance. She also writes in Dutch about hypotheken and hypotheek aflossingsvrij.